Future Directions for SourceAmerica™ Business Development Line of Business Spotlight Series Strategic Business Development Today’s Agenda 1. Introductions and Overview: 2. SourceAmerica Business Development Line of Business Spotlights: • Records Management and Document Services – Paul Koepfinger • Supply Chain Management – Anthony Allen • Contact Center and IT Services – Christopher Seventko 3. Question and Answer (Panel) Line of Business Spotlight Series Our goal for today’s session: • Define the specific Lines of Business highlighted to include information on the respective industry • Discuss Key considerations for launching a new LOB solution in the highlighted business areas • Share how SourceAmerica is here to help: – Support we can provide – Current BD focus areas – Additional resources we can connect you to Strategic Business Development LOB Best Practices: Spotlight Series • Each LOB Spotlight will include: – Key focus areas within the business line – Functions or services that you may already be doing that fit within the industry – Recommendations/key considerations for performing in the industry Records Management/Document Services Paul Koepfinger Business Development Director Facility Services Pieces of the Puzzle • Records Management is multi-dimensional: – identifying – classifying – prioritizing – storing – securing – archiving – preserving – retrieving – tracking 6 The View From 50,000 Feet • The electronic records dichotomy – President’s memorandum for electronic records conversion – Government’s decision to go paperless effects those without internet of computers (25% of Americans) – Digital offers efficiencies, tracking and process improvements – Over 40% of Americans over 40 still prefer paper records – Solution: Hybrid models, Archives, Commercial 7 Seize the Opportunity • Paper and electronic records offer opportunity for job creation: – – – – – – More than just doc prep and scanning File maintenance Records processing Data entry Distribution Record audits • Opportunities in your local community 8 Your Partner In Success • How SourceAmerica is here to help: – Technical assessments and recommendations – List of vendor resources and means for evaluating vendors – Pricing tools – Sales strategy – Additional resources we can connect you to 9 Supply Chain Management Anthony Allen Senior Program Manager Supply Chain Management Supply Chain Management Caveats • Supply Chain Management – Some Caveats – SCM is like art • Multiple terms exist • Everyone has their own interpretation • The key is understanding the customer’s specific terminology – SCM is strategy • It’s not about moving “stuff” • It crosses organizations and functions and even companies – SCM is not rocket science • Or is it? 11 APICS Definition – What is SCM? • Supply Chain Management Defined – APICS – As defined by APICS (The Association for Operations Management), SCM is the design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally. 12 Building Blocks of Supply Chain Mgt • SCM consists of many processes that must be performed within the supply chain. These form the foundational building blocks. – – – – – – – – Forecasting Purchasing/Sourcing Production Planning Inventory Control Warehousing Order Management Distribution Transportation 13 Opportunities Abound • Current health of the SCM Line of Business • 34 existing Supply Chain Line of Business Federal Contracts • Existing contracts have an annual value in excess of $63M • Approximately 694 Disabled Full Time Equivalents are employed within the line of business contracts • Work currently performed in 18 states and Puerto Rico • Current Service Breakout (on PL): ─ Warehousing: 20 Projects ─ Distribution Service: 11 Projects ─ Packing/Distribution: 1 Project Fulfillment: 1 Project Reverse Logistics: 1 Project 14 Supply Chain Market • According to USASpending.gov, over $1.3M dollars in funds were allocated to Supply Chain contracts in FY13 • The direction of the commercial supply chain market can be indicative of the future movement of the Federal Government. • The North American 3PL market grew 6.7% from 2011 to 2012 resulting in $170.6B in revenues for 3PL providers. • Shippers continue to outsource a wide variety of logistics services to include, but not limited to: ─ Warehousing, Freight Forwarding, Customers Brokerage, Reverse Logistics, Reverse Logistics, Cross Docking, Freight Bill Audit and Payment, Product Labeling/Kitting/Assembly, Transportation Planning and Management, Order Management and Fulfillment, Inventory Management, Service Parts Logistics 15 Successfully Considering Initial Cost • Chances are strong that you are already performing some form of Supply Chain Management • Foundations and building blocks of SCM ─ Warehouse ─ Racking/Shelving/Bins ─ Fork trucks, pallet jacks ─ Basic Warehouse Management System 16 Cost (continued) • Costs to Consider  Warehouse space (existing vs. lease vs. build vs. buy) ─ Average lease cost is $6 per sq. ft. per year ─ Operating cost (insurance, utilities, taxes, etc.) averages 25% ─ of lease cost (e.g., 20% of $6 is an $1.20 per sq. ft. per year)  Warehouse capital equipment (e.g., shelving, racks, fork lifts, trucks, vans, pallets) ─ ─ ─ ─ Fork Lift – $700 to $1,000 per month to lease Racking – Assume a cost of $60 to $90 per pallet position Pallets – Standard 48” x 40” heat treated averages $22 per Truck/Van – $500 per month lease per truck/van 17 Cost (continued) • Costs to Consider  Warehouse Management Systems ─ Examples are INFOR Enterprise Asset Management, WASP, EPICOR, Fishbowl, Accelos, HighJump ─ Some WMS systems can cost upwards of $1M+ ─ Realistic cost for a small to mid size CRP would be $5K per license 18 Risk and How to Mitigate • Lack of Customer Service and Communication • Lack of performance metrics in place to efficiently monitor performance (e.g., dock to stock, inventory accuracy, on-time shipments) • Failure to plan for exceptions • Inefficient or erroneous data input 19 Best Practices for Success • Understanding that Supply Chain Management is not the same thing as “warehousing” • Aligning customer requirements with efficient and upfront planning • Supply Chain Agility – Supply Chain partners must be capable of rapidly aligning their collective capabilities to effectively respond to unplanned or unexpected circumstances • Using Supply Chain Technology (e.g., Warehouse Management Systems (WMS), Enterprise Resource Planning (ERP), Transportation Management Systems (TMS) 20 Supply Chain Management Certifications • Warehousing and Education Research Council (WERC) www.werc.org Certification is based on audits in the following areas: • Receiving and Inspection • Material Handling • Slotting • Storage and Inventory Control • Warehouse Management Systems • Shipping Documentation • Picking and Packing • Load Consolidation and Shipping 21 Supply Chain Management Resources • Association for Operations Management (APICS) www.apics.org ─ APICS CPIM – Certified in Production and Inventory Management • Very in-depth to include concepts, mathematical formulas ─ APICS CSCP – Certified Supply Chain Professional • Higher level (30K FT overview) of SCM from cradle to grave 22 Supply Chain Management Resources • Council of Supply Chain Management Professionals (CSCMP) www.cscmp.org • Excellent organization for networking purposes • Offer nine hours of web-based supply chain material to the CRP community at a discounted rate 23 How can SourceAmerica help? • We can point you in the right direction for Supply Chain professional organizations • Series of SCM webinars • SCM workshop conducted annually • Partnership with the Council of Supply Chain Management Professionals offering discounted web based Supply Chain Essentials course to our CRP network • CRP Site visits from the SCM Program Manager 24 Contact Center Services/IT Services Christopher Seventko Business Development Director Technology Services Technology Services History • 2006: NISH leadership approved the original business plan under the name “Tele-services Program.” • A small group of nonprofits were already in the line of business market space. • Strides were made to develop the line of business and educate government organizations to understand our abilities within the Program. • IT and Contact Center Support began to grow and is primed for long-term growth in the AbilityOne® Program. 26 IT Services Help Desk Application (software) Development & Maintenance 27 IT Services Help Desk: • PC and Network configuration • PC application updates • Troubleshooting PC and Network ─ 2 existing contracts ─ Future: Typically part of the larger Contact Center Opportunities ─ Pipeline = $135m, 26 opportunities next 5 years 28 IT Services Application Development and Maintenance: • Very large with multiple subcontract components • QA, Testing, Documentation, Coding and Maintenance • Program management of subs ─ 1 existing contract - ~$60m value ─ 12 months into a 36 month pilot ─ Future: Nearly limitless opportunities in government and commercial sectors 29 Contact Center Services Contact Centers 30 Common Contact Center Offerings • AbilityOne is now known in the Federal and Commercial marketplace as an affordable and quality provider of contact center, help desk, and switchboard services. • AbilityOne CRPs are experienced in multiple service types: – – – – – Switchboard operations IT Support Government-specific support HR Support Customer Service • Commonly supported contact types: – Telephone, chat, email, sms, back office 31 Industry Trends • Integrating Cloud Capabilities – Managing and Connecting data from multiple channels – Understanding scalability, speed of deployment and efficiencies • Improving Multi-channel Communication with Customers – Embracing and Integrating Social Media – Improving Self-service resources • Chat • Virtual assistance – IVR improvement – Virtual agents • Video support • Smart phone interactions – Mobile Apps – Web connectivity • Maintaining Customers – Personalizing Interactions – Increasing Loyalty – Decreasing Costs 32 Contact Center Approach “Spend too little and perform poorly, and your contact center becomes a business liability that consistently drives away customers and creates market damage. Conversely, spend too much and over-perform, and your center again becomes a financial loss to the company. If you spend efficiently and perform effectively at a level just better than your competitors or peer group, your call center will most likely be a profit center for the company, i.e., acquiring, growing, and retaining profitable customers.” ─ Dr. Jon Anton, Call Center Benchmarking Purdue University Press 33 Advantages for AbilityOne Participants • A wide range of disabilities are supported with this line of business that are typically not served by traditional lines of business. – Contact Center Services offer jobs to those with high cognitive abilities. These are jobs that sometimes offer upward mobility and additional responsibility. • Team leaders, supervisors, reporting managers, schedulers, knowledge managers, quality analysts, and trainers. – Jobs are also location independent and allow the non-profit to employ home-based clients. – In relation to business development, nonprofits who are in rural or remote areas are able to attract commercial or government projects from outsource customers regardless of their location. 34 Value Proposition • There are multiple options for service delivery. Often the service delivery is dictated by the government agency’s requirements for security and/or convenience. – On-site • The government furnishes the IT infrastructure and phone equipment as well as the office space and furnishings. • CRP provides the operational management of staff, supervision, quality oversight, and service level adherence. – Off-site • CRP responsible for all operations, equipment, information technology, furniture, and facility. – Virtual or Work-at-home (WAH) • CRP provides the equipment, software, and turnkey operations, but all agents are work-at-home. • Technology and equipment can be hosted so the CRP does not have to operate a brick and mortar operation. • Model can also be deployed in combination with the above options. 35 Value Proposition • Service history in the Ability One program: – 25+ CRPs currently support nearly 50 projects providing contact center, helpdesk and switchboard services – Onshore only – Brick and mortar and/or home-based agents depending client preference • Program Advantages: – Long-term cost reduction through low attrition • Reduced costs associated with recruiting, hiring and training • Statistically higher first contact resolution resulting in fewer repeat calls – No future rebidding or negotiating • Expertise and service accuracy – Seasoned support staff that continues knowledge growth. – Historically better performance across key metrics. • Positive interactions: – Workforce excited to support your customers 36 Entering the Space • SourceAmerica is committed to expanding the CRP capabilities footprint in FY15 and forward. – Existing organizations can grow in the space – New participants can enter and support the market. • Reviewing approaches to build our network: – – – – – Subcontracting or partnering on AbilityOne contracts Small local/state opportunities Prime Contractor Program Acquisition Commercial Mentoring or Partnership Programs 37 Entering the Space Partner with an existing BPO through subcontracting or a Mentorship Program: – Benefits: • • • • • Minimal up-front costs Reduced overall costs Existing processes and resources Flexibility Win-win scenario, CRP gains experience and BPO can change “their story” • Easy transition with potential new contracts – Considerations: • Do organization goals align? • What is the long-term strategy of each group? • Culture? 38 Entering the Space Who deploys or supports call centers? Any organization that has a large customer base • retail • financial services • travel • government • telecom • healthcare • automotive • survey (outbound) 39 Entering the Space Starting your own Contact Center: – Benefits: • Ensure mission integrity and organization objectives are maintained • Clearer vision and greater control of outcome – Considerations: • • • • • • • • • Develop a call center project plan with business objectives and budget Understand your end game, what do you what to accomplish Site Selection and/or Facility Design Understand your competition Choose Infrastructure to align with goals (IVR, telephony, WFM) Develop a Disaster Recovery and Business Continuity Plan Develop a Recruiting Plan (management and agents) Develop a Training Plan (initial and on-going) Create Management Tools and Report 40 SourceAmerica Support • Getting started or improving… – Business planning – Consultation • Statement of work • Proposal development • Technology reviews – Center planning • Guides • Templates – Center assessment and scalability reviews – Performance management and planning including best practice support 41 Wrap-Up • If you have an interest in this space or are currently supporting the line of business, let’s talk! • The IT and contact center lines of business are untapped and we will continue to identify opportunities as they become available. • SourceAmerica can point you to resources or assist you with planning and best practice assessment. • We can also assist in implementation to ensure a quality operation is available to your current or future clients. 42 SourceAmerica Team SourceAmerica team contact information: Chris Seventko: [email protected] 703-584-3974 Sean Armstrong: [email protected] 817-622-7034 Ted Prindle: [email protected] 678-838-5402 43 Question and Answer Session 44 Thank You 45